SEBI eases compliance for Investment Advisers and Research Analysts

Key changes include permitting IAs and RAs to provide past performance data to clients in a template certified by a member of ICAI/ICMAI, valid for two years from the operationalization of Past Risk and Return Verification Agency (PaRRVA).

The SEBI Board approved amendments to the SEBI (Investment Advisers) Regulations, 2013 and the SEBI (Research Analysts) Regulations, 2014 to simplify, ease, and rationalize compliance requirements for Investment Advisers (IAs) and Research Analysts (RAs), and to facilitate the development of the profession of investment advisory and research services.

Key changes include permitting IAs and RAs to provide past performance data to clients in a template certified by a member of ICAI/ICMAI, valid for two years from the operationalization of Past Risk and Return Verification Agency (PaRRVA).

IAs can now provide a second opinion on pre-distributed assets and charge Asset Under Advice (AUA)-based fees within a specified limit of 2.5% of the asset value per annum. Disclosure of dual charges and annual client consent are mandatory.

The timeline for individual IAs to convert into non-individual IAs upon crossing the specified threshold has been extended. During the transition period, they may continue adding new clients and receiving additional fees beyond Rs 3 crore.

Educational qualification requirements have been relaxed. Now any graduate is now eligible to register as IA/RA, subject to specified NISM certifications.

Applicants are no longer required to furnish proof of address but must still disclose address and provide proof of identity. They are also exempted from submitting CIBIL reports, net worth or asset liability statements, and infrastructure details, while continuing to provide relevant declarations.

These amendments are intended to simplify compliance for IAs and RAs, support development of the profession, and ensure ease of entry for qualified persons.

The proposals were put to public consultation in August 2025, and the feedback received was duly incorporated.